FX.co ★ Heating Oil Rises Over 1%

Heating oil futures in the United States saw an increase of over 1%, reaching approximately $2.26 per gallon. This uptick marks a recovery from a six-week low, following OPEC+'s decision to implement a modest rise in production. After a virtual meeting held on Sunday, the group announced an increase in production by 137,000 barrels per day in November, consistent with the increase observed in October. OPEC+ highlighted a stable global outlook and robust market fundamentals but acknowledged that production adjustments could be paused or reversed should market conditions change. Despite this, most analysts anticipate a supply surplus by late 2025 and into 2026, driven by decelerating demand and increased US production. Adding to these concerns, data from the Energy Information Administration (EIA) indicated that US distillate inventories rose by 0.58 million barrels last week, contrary to expectations of a 1 million-barrel reduction. Heating oil stocks saw an increase of nearly 113,000 barrels, while refinery output declined by 308,000 barrels per day, with operational utilization at 91.4%, suggesting reduced demand or exports for middle distillates.